JOL and GCML Sign MOU

• Jamaica Observer Limited (JOL) and The Gleaner Company (Media) Limited (GCML), one of Radio Jamaica Limited’s subsidiaries, have signed a Memorandum of Understanding (MOU) to examine the feasibility of using common printing and distribution logistics services, i.e., print production and distribution only. Both companies will remain fully independent, with separate ownership, operations, and editorial control.
• The MOU signals the shared intent of two of Jamaica’s most respected media companies to build out a coordinated and efficient print and distribution logistics model. This exploratory agreement marks the start of an important phase of planning and development, during which both entities will work together on the processes and procedures required to form a stand-alone joint venture (JV) while ensuring all relevant regulatory bodies are notified.
• Under the MOU, the companies will collaborate on a range of preparatory activities related to the feasibility of forming a JV, including communications with stakeholders, testing of new processes, staffing assessments, logistics planning, and operational modelling. This phase will also allow both parties to address any regulatory, technical, or organisational considerations ahead of the formal registration of the joint venture entity.
• Through its subsidiary GCML, RJR stands to reduce operational costs if the proposed joint print and distribution venture with JOL proceeds. Consolidating logistics could eliminate redundancies in delivery networks, printing infrastructure, and staffing, all significant cost drivers in the print media sector, which could reduce costs and driving profitability.
• Over the last 5 years, RJR’s earnings have been volatile, and it has recorded a $528.75MN loss in 2024. Its stock price has decreased by 0.80% since the start of the calendar year.

 (Source: JSE & NCBCM Research)